BILL NUMBER: SB 658	CHAPTERED  09/16/99

	CHAPTER   433
	FILED WITH SECRETARY OF STATE   SEPTEMBER 16, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 16, 1999
	PASSED THE SENATE   SEPTEMBER 3, 1999
	PASSED THE ASSEMBLY   AUGUST 30, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 6, 1999

INTRODUCED BY   Senator Karnette

                        FEBRUARY 24, 1999

   An act to amend Sections 84200.3, 84602, 84603, 84604, 84605,
84606, and 84610 of the Government Code, relating to the Political
Reform Act of 1974, making an appropriation therefor, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 658, Karnette.  Political Reform Act of 1974:  campaign
statements:  electronic filing.
   The existing Political Reform Act of 1974 (the act) provides that
a city general purpose committee is required to file campaign
statements in connection with a statewide direct primary held in
March of an even-numbered year, and any other election held on that
same day as that election, unless it has made contributions or
independent expenditures totaling $500 or more during the period July
1 through September 30.
   This bill instead would require one of those committees to file
those campaign statements in connection with those elections, unless
it has not made contributions or independent expenditures totaling
$500 or more during the period July 1 through September 30.
   Existing provisions of the act require specified candidates for
public office and committees supporting or opposing candidates or
ballot measures to periodically file reports with the Secretary of
State and certain local officials setting forth information
concerning contributions they received and expenditures they made
during the specified reporting period.  Existing provisions of the
act also require lobbyists, lobbying firms, and lobbyist employers to
periodically file specified reports and statements with the
Secretary of State.
   Existing law requires the Secretary of State, in consultation with
the Fair Political Practices Commission, to develop an online filing
process for the purposes of filing statements and reports with the
Secretary of State pursuant to the act, to develop a system that
provides for the online transfer of data, as specified, to make all
data filed online available, as specified, and to report to the
Legislature on the implementation of the online filing and disclosure
requirements.  Under existing law, once all state-mandated
development, procurement, and oversight requirements are met, the
Secretary of State must make public its availability to accept
reports and filings online.  Existing law requires the Secretary of
State to implement an online disclosure program in connection with
the June 2000 ballot and specified lobbying activities.
   This bill would, in addition, require the Secretary of State to
develop a prescribed electronic filing process for those purposes, to
make public the availability of that electronic filing process, and
to determine and publicly disclose when the electronic disclosure
system is operating effectively.  The bill would specifically require
the information to be disclosed on the Internet.
   This bill would require the filing process and disclosure of
information to be done both online and electronically.  The bill
would authorize an appropriation made to the Secretary of State for
the purposes of developing the existing online disclosure system to
also be expended for the purposes of developing the electronic
disclosure system, and would thereby make an appropriation.
   Existing law requires the Secretary of State to commence online
disclosure with the first preelection statement filed for the period
ending March 17, 2000.  Existing law specifies the entities subject
to those provisions as any candidate, committee, or other persons who
are required, as specified, to file statements, reports, or other
documents in connection with a state elective office or state measure
appearing on the June 2000 ballot, and general purpose committees,
as specified, receiving contributions to support or oppose candidates
for any elective state office or state measure appearing on the June
2000 ballot.
   This bill would instead require the Secretary of State to commence
online and electronic disclosure with the first preelection
statement filed in connection with the 2000 statewide direct primary
election.
   Existing law requires, beginning on July 1, 2000, and for all
applicable reporting periods thereafter, that specified persons file
online with the Secretary of State.
   This bill would also specify that the entities subject to
provisions pertaining to online and electronic filings include
appellate court and Supreme Court candidates and officeholders.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill, which would declare that it furthers the purposes of
the act, would therefore require a 2/3 vote.
   Existing law makes a violation of the act subject to
administrative, civil, and criminal penalties.
   This bill would impose a state-mandated local program by imposing
those criminal penalties on certain persons who violate provisions of
the bill.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 84200.3 of the Government Code, as added by
Chapter 158 of the Statutes of 1999, is amended to read:
   84200.3.  (a) In connection with a statewide direct primary held
in March of an even-numbered year, and any other election held on the
same day as that election, the following candidates and committees
shall file campaign statements pursuant to Section 84200.4 for the
calendar year prior to the election:
   (1) All candidates who have filed or are required to file a
statement of intention pursuant to Section 85200 in connection with
the election, their controlled committees, and committees primarily
formed to support or oppose those candidates.
   (2) Committees formed pursuant to subdivision (a) of Section 82013
that are primarily formed to support the qualification, passage, or
defeat of a measure being voted upon in the election.
   (3) State and county general purpose committees formed pursuant to
subdivision (a) of Section 82013, except that a committee covered by
this subdivision is not required to file pursuant to subdivision (a)
of Section 84200.4 if it has not made contributions or independent
expenditures totaling five hundred dollars ($500) or more during the
period July 1 through September 30.
   (4) City general purpose committees formed pursuant to Section
82013, except that a committee covered by this subdivision is not
required to file pursuant to subdivision (a) of Section 84200.4 if it
has not made contributions or independent expenditures totaling five
hundred dollars ($500) or more during the period July 1 through
September 30.
   (5) Candidates and committees not covered under paragraphs (1) to
(4), inclusive, that make contributions totaling five thousand
dollars ($5,000) or more to an elected state officer, a candidate for
elective state office, his or her controlled committee, or a
committee primarily formed to support or oppose any elected state
officer or candidate for elective state office during the period July
1, through September 30 or July 1 through December 31.
   (6) Any slate mailer organization that produces a slate mailer
supporting or opposing a candidate or measure being voted on in the
election if the slate mailer organization receives payments totaling
five hundred dollars ($500) or more from any person for the support
of or opposition to a candidate or ballot measure in one or more
slate mailers, or expends five hundred dollars ($500) or more to
produce one or more slate mailers.
   (b) A candidate, committee, or slate mailer organization required
to file a campaign statement pursuant to this section is not required
to file a campaign statement pursuant to Section 84200 or 84218 for
the period ending December 31 of the year prior to the statewide
direct primary election.
   (c) A candidate or committee who has filed a campaign statement
pursuant to this section is not required to file additional
statements pursuant to Section 84202.3, 84202.5, or 84202.7.
  SEC. 2.  Section 84602 of the Government Code is amended to read:
   84602.  To implement the Legislature's intent, the Secretary of
State, in consultation with the  commission, notwithstanding any
other provision of this title or any other provision of the
Government Code, shall do all of the following:
   (a) Develop online and electronic filing processes for use by
persons and entities specified in Sections 84604 and 84605 required
to file statements and reports with the Secretary of State's office
pursuant to Chapter 4 (commencing with Section 84100) and Chapter 6
(commencing with Section 86100).  As part of that process, the
Secretary of State shall define a nonproprietary standardized record
format or formats using industry standards for the transmission of
the data that is required of those persons and entities specified in
subdivision (a) of Section 84604 and Section 84605 and that conforms
with the disclosure requirements of this title.  The Secretary of
State shall hold public hearings prior to development of the record
format or formats as a means to ensure that affected entities have an
opportunity to provide input into the development process.  The
format or formats shall be made public no later than July 1, 1999, to
ensure sufficient time to comply with the requirements of this
chapter.
   (b) Accept test files, from software vendors and others wishing to
file reports electronically, for the purpose of determining whether
the file format is in compliance with the standardized record format
developed pursuant to subdivision (a) and is compatible with the
Secretary of State's system for receiving the data.  A list of
software and service providers who have submitted acceptable test
files shall be published by the Secretary of State and made available
to the public.  Acceptably formatted files shall be submitted by a
filer in order to meet the requirements of this chapter.
   (c) Develop a system that provides for the online or electronic
transfer of the data specified in this section utilizing
telecommunications technology that assures the integrity of the data
transmitted and that creates safeguards against efforts to tamper
with or subvert the data.
   (d) Make all the data filed available on the Internet in an easily
understood format that provides the greatest public access.  The
data shall be made available free of charge and as soon as possible
after receipt.  All late contribution and late independent
expenditure reports, as defined by Sections 84203 and 84204,
respectively, shall be made available on the Internet within 24 hours
of receipt.  The data made available on the Internet shall not
contain the street name and building number of the persons or entity
representatives listed on the electronically filed forms.
   (e) Develop a procedure for filers to comply with the requirement
that they sign under penalty of perjury pursuant to Section 81004.
   (f) Maintain all filed data online for 10 years after the date it
is filed, and then archive the information in a secure format.
   (g) Provide assistance to those seeking public access to the
information.
   (h) Consult with the Department of Information Technology and
implement sufficient technology to seek to prevent unauthorized
alteration or manipulation of  the data.
   (i) Provide the commission with necessary information to enable it
to assist agencies, public officials, and others, with the
compliance and with administration of this title.
   (j) Report to the Legislature on the implementation and
development of the online and electronic filing and disclosure
requirements of this chapter.  The report shall include an
examination of system security, private security issues, software
availability, compliance costs to filers, and other issues relating
to this chapter, recommending appropriate changes if necessary.  In
preparing the report, the commission may present to the Secretary of
State and the Legislature its comments regarding this chapter as it
relates to the duties of the commission and suggest appropriate
changes if necessary.  There shall be one report due before the
system is operational as set forth in Section 84603, and one due no
later than June 1, 2001.
  SEC. 3.  Section 84603 of the Government Code is amended to read:
   84603.  The Secretary of State, once all state-mandated
development, procurement, and oversight requirements have been met,
shall make public their availability to accept reports online or
electronically.  Any filer may then commence voluntarily filing
online or electronically any required report or statement that is
otherwise required to be filed with the Secretary of State pursuant
to Chapter 4 (commencing with Section 84100) or Chapter 6 (commencing
with Section 86100) of this title.
  SEC. 4.  Section 84604 of the Government Code is amended to read:
   84604.  (a) The Secretary of State shall implement an online or
electronic disclosure program in connection with the 2000 state
primary election and the lobbying activities specified in paragraph
(4).  Entities specified in paragraphs (1), (2), and (3) shall
commence online or electronic disclosure with the first preelection
statement filed in connection with the 2000 statewide direct primary
election for the period ending January 22, 2000, and shall continue
to disclose online or electronically all required reports and
statements up to and including the semiannual statement for the
period ending June 30, 2000.  Entities specified in paragraph (4)
shall commence online or electronic disclosure with the quarterly
report for the period ending March 31, 2000, and shall continue to
disclose online or electronically all required reports and statements
up to and including the quarterly report for the period ending June
30, 2000.  The entities subject to this section are the following:
   (1) Any candidate, including appellate court and Supreme Court
candidates and officeholders, committee, or other persons who are
required, pursuant to Chapter 4 (commencing with Section 84100), to
file statements, reports, or other documents in connection with a
state elective office or state measure appearing on the 2000
statewide direct primary ballot, provided that the total cumulative
reportable amount of contributions received, expenditures made, loans
made, or loans received is one hundred thousand dollars ($100,000)
or more.  For the purpose of cumulating totals, the period covered
shall commence January 1, 1999.
   (2) Any general purpose committees, as defined in Section 82027.5,
including the general purpose committees of political parties, and
small contributor committees, as defined in Section 85203, that
cumulatively receive contributions or make expenditures totaling one
hundred thousand dollars ($100,000) or more to support or oppose
candidates for any elective state office or state measure appearing
on the 2000 statewide direct primary ballot.  For the purpose of
cumulating totals, the period covered shall commence January 1, 1999.

   (3) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of one hundred thousand dollars ($100,000) or more in connection
with the 2000 statewide direct primary election.  For the purpose of
cumulating totals, the period covered shall commence January 1, 1999.

   (4) Any lobbyist, lobbying firm, lobbyist employer, or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents, provided
that the total amount of any category of reportable payments,
expenses, contributions, gifts, or other items is one hundred
thousand dollars ($100,000) or more in a calendar quarter.
   (b) Filers specified in subdivision (a) shall also continue to
file required disclosure forms in paper format.  The paper copy shall
continue to be the official version for audit and other legal
purposes.  Committees and other persons that are not required to file
online or electronically by this section may do so voluntarily.
   (c) The Secretary of State shall also disclose on the Internet any
late contribution or late independent expenditure report, as defined
by Sections 84203 and 84204, respectively, not covered by
subdivision (a).
   (d) It shall be presumed that online or electronic filers file
under penalty of perjury.
  SEC. 5.  Section 84605 of the Government Code is amended to read:
   84605.  Beginning on July 1, 2000, and for all applicable
reporting periods thereafter, the following persons shall file online
or electronically with the Secretary of State:
   (a) Any candidate, including appellate court and Supreme Court
candidates and officeholders, committee, or other persons who are
required, pursuant to Chapter 4 (commencing with Section 84100), to
file statements, reports, or other documents in connection with a
state elective office or state measure, provided that the total
cumulative reportable amount of contributions received, expenditures
made, loans made, or loans received is fifty thousand dollars
($50,000) or more.  In determining the cumulative reportable amount,
all controlled committees, as defined by Section 82016, and
officeholder accounts, as defined by Section 85313, shall be
included.  For a committee subject to this title prior to January 1,
2000, the beginning date for calculating cumulative totals is January
1, 2000.  For a committee that is first subject to this title on or
after January 1, 2000, the beginning date for calculating cumulative
totals is the date the committee is first subject to this title.  A
committee, as defined in subdivision (c) of Section 82013, shall file
online or electronically if it makes contributions of fifty thousand
dollars ($50,000) or more in a calendar year.
   (b) Any general purpose committees, as defined in Section 82027.5,
including the general purpose committees of political parties, and
small contributor committees, as defined in Section 85203, that
cumulatively receive contributions or make expenditures totaling
fifty thousand dollars ($50,000) or more to support or oppose
candidates for any elective state office or state measure.  For a
committee subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a committee that first is subject to this title on or after
January 1, 2000, the beginning date for calculating cumulative totals
is the date the committee is first subject to this title.
   (c) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of fifty thousand dollars ($50,000) or more.  For a slate mailer
organization subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a slate mailer organization that first is subject to this title
on or after January 1, 2000, the beginning date for calculating
cumulative totals is the date the organization is first subject to
this title.
   (d) Any lobbyist, lobbying firm, lobbyist employer or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents, provided
that the total amount of any category of reportable payments,
expenses, contributions, gifts, or other items is five thousand
dollars ($5,000) or more in a calendar quarter.
   (e) The Secretary of State shall also disclose on the Internet any
late contribution or late independent expenditure report, as defined
by Sections 84203 and 84204, respectively, not covered by
subdivision (a), (b), or (c).
   (f) Committees and other persons that are not required to file
online or electronically by this section may do so voluntarily.
   (g) Once a person or entity is required to file online or
electronically, subject to subdivision (a), (b), (c),  (d), or (f),
the person or entity shall be required to file all subsequent reports
online or electronically.
   (h) It shall be presumed that online or electronic filers file
under penalty of perjury.
   (i) Persons filing online or electronically shall also continue to
file required disclosure statements and reports in paper format.
The paper copy shall continue to be the official filing for audit and
other legal purposes until the Secretary of State, pursuant to
Section 84606, determines the system is operating securely and
effectively.
   (j) The Secretary of State shall maintain at all times a secured,
official version of all original online and electronically filed
statements and reports required by this chapter.  Upon determination
by the Secretary of State, pursuant to Section 84606, that the system
is operating securely and effectively, this online or electronic
version shall be the official version for audit and other legal
purposes.
  SEC. 6.  Section 84606 of the Government Code is amended to read:
   84606.  The Secretary of State shall determine and publicly
disclose when the online and electronic disclosure systems are
operating effectively.  In making this determination, the Secretary
of State shall consult with the commission, the Department of
Information Technology, and any other appropriate public or private
entity.  The online or electronic disclosure system shall not become
operative until the Department of Information Technology approves the
system.  Upon this determination, filers required by this chapter to
file online or electronically will no longer be required to file a
paper copy or with local filing officers.  Furthermore, the date that
a filer transmits an online or electronic report shall be the date
the filed report is received by the Secretary of State.
  SEC. 7.  Section 84610 of the Government Code is amended to read:
   84610.  There is hereby appropriated from the General Fund of the
state to the Secretary of State the sum of one million one hundred
thousand dollars ($1,100,000) for the purposes of developing the
online and electronic disclosure systems provided by this chapter and
reimbursing local agencies for any costs they incur in the
development of  these systems.
  SEC. 8.  The Legislature finds and declares that the provisions of
this act further the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.
  SEC. 9.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  SEC. 10.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order for the Secretary of State to implement the online and
electronic filing and disclosure systems described in Sections 1 to 7
of the act in time for the 2000 statewide direct primary election,
it is necessary that this act take effect immediately.
